US Marshals Now Arresting People for Failing to Pay Student Loans

I am finding reports that the federal government is now hiring private debt collectors for past due student loans. Those debt collectors are then getting judgments against the debtors. And when you fail to pay, those attorneys ask for - and are getting - judges to issue arrest warrants.

So, if you are past due on your student loan debts, you might be getting a knock on the door from the US Marshals service.

People struggling with debt and student loans should know to contact the authorities like the FTC if they are ever threatened with arrest over a debt.

But they should also definitely show up in court when they are told to. Because while debtors prisons were eliminated by law in the late 1880s, you can be arrested for contempt of court. And that is how most debtors end up in jail - they fail to appear when summoned for a hearing or trial about their debt.

Also, you need to be aware that the government says: "If your loan is placed with a collection agency, you will be responsible for costs incurred to get payment. The holder of your loan can take other actions to collect as well."

Those "other actions" can include garnishing your tax refund and even garnishing your wages.